“Until death do we part…” doesn’t always happen that way.

Going through a divorce or separation is often emotional and can be a financial roller coaster, but getting good mortgage advice can at least help you understand your options, save you money, and unnecessary hassle.

Every situation is unique; options usually include selling the home and dividing the sale proceeds, or one partner buying out the other — this is where we can help.  One of the limiting factors for a spousal buyout is that Canadian mortgage refinance rules only allow financing up to 80% of current appraised property value, leaving 20% of the equity tied up in the home, which sometimes isn’t enough.



This program is different because it falls under mortgage purchase rules which allow you to finance up to 95% of your home’s value, so you may be able to keep the home, while paying out your ex their portion of the home’s equity, possibly even joint debt (must be stipulated in the Separation Agreement).  It also lets you maintain some stability in an otherwise turbulent time.   To qualify for this program, you must have good credit and must be able to afford the mortgage on your income alone, both you and your ex must be currently registered on the land title, and a Separation Agreement is required.


SEPARATION AGREEMENT:  Having a fully executed separation agreement is priority. This will ensure that all parties are on the same page with regard to custody arrangement for any children, child support, spousal support, the division of assets and debts — including the matrimonial home and related mortgage.  No bank will entertain new mortgage financing until a fully executed Separation Agreement is in place to ensure that their interest (and yours) is protected.

KEEP PAYING YOUR BILLS: I cannot stress this enough — keep paying your bills on time throughout the settlement period. Even though one party may have moved out of the home, disagrees about who’s responsible for what, if his/her name is still on the mortgage and bills, that individual is still responsible to pay them!  Recent slow or missed payments will make it very expensive or near impossible to qualify for mortgage financing in the foreseeable future.

SEPARATE JOINT ACCOUNTS:  separate your joint accounts as soon as possible and check your credit report (both Equifax and Trans Union) to make sure that nothing was missed.


Please feel free to contact me for more information and discuss your unique situation – I’m here to help.


*Important; you should not make any final decisions related to your separation/divorce without the advice of a lawyer; although I can explain concepts and options, I am not a legal expert*